Roxas urges ‘apprenticeship wages’ for SME workers

Trade and Industry Secretary Manuel Roxas II proposed yesterday the grant of "apprenticeship wages" to small and medium-enterprise (SME) workers.

According to Roxas, most SMEs do not pay minimum wages because the people working in these businesses are usually relatives and family members who work cooperatively to run their firm.

The current minimum wage in Metro Manila is P250 a day.

"A special type of wage for SMEs would prevent them from having to lay off workers," Roxas said, adding that "the apprenticeship wages would definitely be lower than the minimum wage."

Roxas said the apprenticeship wages should apply only to SMEs and only for a limited length of time.

The DTI chief, however, has not yet specified an amount for the apprenticeship wage and the length of time it would imposed as he still wants to get a further reaction from the SME sector.

Some industry observers said the labor sector may react violently to such a special type of wage especially since they are even clamoring for an increase in the minimum wage.

Labor groups are seeking a P125 increase in the minimum wage.

Earlier, industrialist Raul Concepcion said a P125 hike in the minimum wage would be "disastrous" for local industries.

Employers said any wage increase should be determined on a region to region basis and should not be implemented on an "across-the-board" basis.